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Historic Buildings - Assets:
<br />- location - usually close to downtown or neighborhood centers
<br />- imagery - historic buildings have a special physical presence and ar�e part
<br />the urban fabric. They have a "memory of market" for locar citizens', that
<br />�
<br />residents of the area remember shopping or using the buildings and have a
<br />}oyalty to them '
<br />- superb visual qua}ities which have a financia} and a marketing value
<br />� �`�'� reuse �' resources �` '� � ' `
<br />of
<br />��'
<br />- *,'vw r�u�� or resources - zne mu//o/ng itself walls, design, some mechanical
<br />sYstems, etc. can all be reused in addition to public utilities
<br />L i ab i l i t i es :
<br />- Inefficient - historic buildings are sometimes inefficient in terms .f gross
<br />|pasab}e.area, they often have large halls and public areas
<br />- unknown elements - there are often rehabilitation costs which are unknown
<br />until actua} work begins
<br />- wariness of financial institutions - banks often feel restoration projects
<br />too risky because of unknown costs, this is. also true of appraisors,
<br />particularj,�-' when they have no experience with historic buildings
<br />- most developers feel that it is more trouble to develop historic buildings,
<br />real estate brokers are often reluctant to handle historic buildings
<br />Information to be gathered to market historic
<br />square footage, total and by floor
<br />floor plans or at least a rough sketch
<br />buildings:
<br />,:;. list of structural problems, real and perceived
<br />4. code problems
<br />5. zoning and if it isn't what is needed, process for changing
<br />6. ballpark stabilization costs
<br />7. ballpark rehab costs, on a square footage basis
<br />8. appraised value and status of taxes
<br />9. spec/al elements or, features of the building
<br />Information to be gathered on the local market:
<br />>. rent levels in the area
<br />2. sales figures for the area (they can
<br />county from Indianapolis)
<br />3. list -of local businesses that
<br />want to
<br />I. vacancy rate and reasons for 'vacancy
<br />5, consumer base and their buying habits
<br />6. prospective projects in the area that
<br />7. rental and sales prices, other units
<br />'
<br />rental or owner occupied
<br />8. number of units rented or sold
<br />9. rent levels in existing office space
<br />This information can be gathered on your
<br />are
<br />be obtained from sales tax figures by
<br />expand or move
<br />(5 to 10% is normal)
<br />will compete with yours
<br />being rehabbed and whether they are
<br />own or by a hired consultant.
<br />Developer's Priorities and Limitations
<br />- the most difficult projects to find developers for seem to be the ones between
<br />UO,OOO and l million _
<br />developers want as little regulatory constraints or government intervention
<br />t�l' `
<br />p����-`make *�
<br />�t��m���r����f- �r�w�
<br />��w �nc|wvmxr� with �h�m^'.as�'ear�'A,m''a �
<br />proJectas possible.projec��,de�a�� cost them money!
<br />,
<br />Mark,e t i ng
<br />for Development of
<br />Historic Properties Workshop
<br />August 27, 1986
<br />fe
<br />Developer"s Role
<br />Tom
<br />Moriarity, Senior
<br />Associate, Halcyon
<br />Ltd., Washington, D.C.
<br />Historic Buildings - Assets:
<br />- location - usually close to downtown or neighborhood centers
<br />- imagery - historic buildings have a special physical presence and ar�e part
<br />the urban fabric. They have a "memory of market" for locar citizens', that
<br />�
<br />residents of the area remember shopping or using the buildings and have a
<br />}oyalty to them '
<br />- superb visual qua}ities which have a financia} and a marketing value
<br />� �`�'� reuse �' resources �` '� � ' `
<br />of
<br />��'
<br />- *,'vw r�u�� or resources - zne mu//o/ng itself walls, design, some mechanical
<br />sYstems, etc. can all be reused in addition to public utilities
<br />L i ab i l i t i es :
<br />- Inefficient - historic buildings are sometimes inefficient in terms .f gross
<br />|pasab}e.area, they often have large halls and public areas
<br />- unknown elements - there are often rehabilitation costs which are unknown
<br />until actua} work begins
<br />- wariness of financial institutions - banks often feel restoration projects
<br />too risky because of unknown costs, this is. also true of appraisors,
<br />particularj,�-' when they have no experience with historic buildings
<br />- most developers feel that it is more trouble to develop historic buildings,
<br />real estate brokers are often reluctant to handle historic buildings
<br />Information to be gathered to market historic
<br />square footage, total and by floor
<br />floor plans or at least a rough sketch
<br />buildings:
<br />,:;. list of structural problems, real and perceived
<br />4. code problems
<br />5. zoning and if it isn't what is needed, process for changing
<br />6. ballpark stabilization costs
<br />7. ballpark rehab costs, on a square footage basis
<br />8. appraised value and status of taxes
<br />9. spec/al elements or, features of the building
<br />Information to be gathered on the local market:
<br />>. rent levels in the area
<br />2. sales figures for the area (they can
<br />county from Indianapolis)
<br />3. list -of local businesses that
<br />want to
<br />I. vacancy rate and reasons for 'vacancy
<br />5, consumer base and their buying habits
<br />6. prospective projects in the area that
<br />7. rental and sales prices, other units
<br />'
<br />rental or owner occupied
<br />8. number of units rented or sold
<br />9. rent levels in existing office space
<br />This information can be gathered on your
<br />are
<br />be obtained from sales tax figures by
<br />expand or move
<br />(5 to 10% is normal)
<br />will compete with yours
<br />being rehabbed and whether they are
<br />own or by a hired consultant.
<br />Developer's Priorities and Limitations
<br />- the most difficult projects to find developers for seem to be the ones between
<br />UO,OOO and l million _
<br />developers want as little regulatory constraints or government intervention
<br />t�l' `
<br />p����-`make *�
<br />�t��m���r����f- �r�w�
<br />��w �nc|wvmxr� with �h�m^'.as�'ear�'A,m''a �
<br />proJectas possible.projec��,de�a�� cost them money!
<br />,
<br />
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